Glossary of Terminology & Rules

Rep or Dealer:

A person that has filled out the company application and is in the genealogy is referred to as a Rep or a "Dealer."

Customer:

A Customer is associated with a Dealer. However, a Customer cannot sign-up other Dealers and cannot receive commissions. A Customer is not placed in any Genealogy. A Customer is considered to be on the same level as the Dealer who sponsored the customer; i.e., Customer is on Level 0 to a Dealer.

If and when a customer upgrades to a Dealer, then he will be placed in the binary genealogy using the regular binary placement rules.

Bonus Period:

Each bonus period begins at 12:01AM on Sunday and ends at midnight the following Saturday.

Qualification Period:

The qualification period is a rolling 30-day period. In other words, a Dealer must place a minimum order every 30 days to qualify for commissions.

Genealogy:

This is the Company's overall structure that indicates how and where Dealers are placed. Company supports a primary Binary Genealogy and a secondary Unilevel Genealogy based on Personally Sponsored Dealer Enrolments.

Business Center (BC):

A Dealer can have only one position or "Business Center" in the Binary Genealogy.

Upline/Placement:

This refers to the Dealers / Reps / Business Centers above a new or existing Dealer / Rep or BC in the Genealogy.

Downline:

This refers to the Dealers / Reps / Business Centers below a Dealers / Reps / Business Center in the Genealogy.

Enroller:

An Enroller is a Dealer who personally sponsors a new Dealer and who first explains the DrinkACT business opportunity to the new Dealer. Enroller is also the term referring to a Dealer who personally sponsors a customer.

Bonus Volume:

Bonus Volume is a separate monetary amount independent of a product's original cost that is defined by the Company. Each product has Bonus Volume amounts associated with it and commission calculations are based on the Bonus Volume of an item. Some products, such as business tools, may carry 0 in volume as they will not be commissionable in the compensation plan.

Personal Volume (PV):

PV is the amount of Volume generated by a Dealer when the Dealer purchases products (for their personal use) and DOES include the Volume from the Dealer's Customers when they make purchases.

Monthly Scheduled Delivery / Automatic Monthly Shipment / Autoship PV (PV-A):

PV-A is the amount of Volume earned from a Dealer's Monthly Scheduled Delivery (Autoship) Orders and does NOT include Volume from the Dealer's Customers. PV-A only includes Volume from Monthly Scheduled Delivery Orders.

Binary Group Volume (GV-B):

GV-B is the summed PV in a Dealer's downline in the binary plan. It does NOT include a Dealer's own PV.

Unilevel Group Volume (GV-U or PGV):

GV-U is the summed PV in a Dealer's downline generated from Personally Sponsored Dealers. It does NOT include a Dealer's own PV. This is also referred to as PGV.

Personal Group Volume - Left (PGV-L)

PGV-L is a Dealer's GV-U coming from any Dealers in his or her left sales team.

Personal Group Volume - Right (PGV-R)

PGV-R is a Dealer's GV-U coming from any Dealers in his or her right sales team.

Left Sales Team Volume (LV):

LV represents a Dealer's downline GV-B for the "left leg" or Left Sales Team.

Right Team Volume (RV):

RV represents a Dealer's downline GV-B for the "right leg" or Right Sales Team.

Bonus Volume or Bonus Value (BV):

BV refers to the commissionable left or right sales team volume amounts used in Binary Commission calculations.

Strong Team Leg/Power Leg:

This is the Leg or Sales Team with the most total amount of GV-B. It could be the Right Sales Team (Right Leg) or the Left Sales Team (Left Leg).

Weak Team Leg / Pay Leg / Building Leg:

This is the Leg or Sales Team with the least total amount of GV-B. It could be the Right Sales Team (Right Leg) or the Left Sales Team (Left Leg).

 

Breakage:

Any bonus or commissions that are left unpaid due to the ineligibility of a consultant to qualify for that type of bonus or commission is referred to as "Breakage."

 

Carry Over Volume:

This refers to any excess volume that is left over (on the Strong Leg) once commissions have been calculated for the week. Any Volume not used for commission calculations in any given week will Carry Over to the next commission cycle.

 

Extra PV Considerations:

At the time of commissions, the system will determine the weakest leg based on (current + carryover) left and right team volumes and will add any customer PV to the weakest leg of the distributor who generates the extra PV.

 

Cycle Cap Rule:

The number of times a Dealer or Business Center can cycle in a commission week varies based on "Paid As" Rank.

The cycle caps are as follows:

Active & Qualified Dealer or Bronze Dealer = 140 cycles per week

Silver Dealer = 200 cycles per week

Gold Dealer = 400 cycles per week

Platinum Dealer = 600 cycles per week

Diamond Director = 1000 cycles per week

Executive Diamond Director = 2000 cycles per week

 

After the cycle cap is reached, any BV left over on the strong leg will carry over in its entirety to the next commission period. However, on the weak leg, not more than 5000 BV will carry over to the next commission period.

Please note that Global Bonus Pool cycles (5 th cycles) do NOT count towards a dealer's Cycle Cap for the week, but it DOES remove 120 BV from the left and right legs of the Dealer

Flushing Rule:

If a Dealer has joined 60 days before the Bonus Period End Date and does not have at least 40 PV in the past 60 days then all (current + carryover) volumes will flush and he will carry over 0 BV on left and 0 BV on right to the next commission period.

Check Fee / Minimum Check Amount:

The minimum check amount is $10. Any amounts less than $10 will be held and paid during a future bonus period. This is called a "balance forward". There is a $2 check fee for the company.